New Tax Rules For Landlords
Stamp Duty Land Tax
SDLT is payable on purchases of residential properties within 30 days of completion.
The Government announced that from 1 April 2016, any additional residential property purchased will be liable to pay higher rates of SDLT which are set to be 3% above the current rates. This announcement seems particularly aimed at individuals that purchase second homes and buy to let landlords.
This is undoubtedly attacking buy to let landlords as the cost of purchasing residential properties will be higher from April 2016. This announcement is in addition to the new proposals to be introduced from April 2017 which will restrict loan/mortgage interest relief. For details, please click.
The time allowed to pay the SDLT (and to file the corresponding return) will be reduced from April 2017 from 30 days to within 14 days.
Capital Gain Tax
The attack continues.
Unless you are a non-resident, capital gains tax is payable by individuals to HMRC by 31 January following the end of the tax year. From April 2019, a payment on account of any CGT due on the disposal of residential property will be required to be made within 30 days of the completion of the disposal